With 2020 finally here and the holiday season winding down, it’s a great time to gameplan about how to make this year more profitable than the last for your construction or field service business. And with so many new technologies available on the market and the business forecast looking promising, the upcoming year is one full of potential earnings if you have a sound strategy. In this post, we’ll discuss the 5 top ways you can make 2020 your company’s most financially successful year yet.
#1. Purchase time tracking software.
Because of GPS-powered technology, construction time tracking solutions like ExakTime enable you to only pay for the hours your employees actually worked. By getting rid of buddy punching, late clock-ins, inefficient payroll and exaggerated hours, your profits will increase almost immediately. In fact, with the savings our customers receive, ExakTime typically pays for itself within the first pay period—and then saves companies thousands of dollars every time they process payroll. With this extra cash, you’ll be able to invest it back into your business and continue growing in 2020 and beyond.
#2. Invest in digital marketing.
With 70 percent of American businesses now active on various social media channels, it’s becoming increasingly clear how important it is to have a strong digital presence in today’s business world—no matter what industry you’re involved in. While word of mouth marketing, client referrals and a great reputation will never go out of style, digital marketing is becoming essential when it comes to attracting new clients.
Not only will investing in digital marketing enable you to reach more prospects for your business, but it can also help your brand be perceived by potential clients as more professional than it would otherwise. While there are dozens of different channels you can effectively leverage for your digital marketing, here are some solid places to start.
- Google and Bing ads
- Social media ads (Facebook, Instagram, Twitter, LinkedIn, etc.)
- Email marketing campaigns
- Modern, high-quality design on your website
If you’d like to read our full guide on getting started with digital marketing as a construction business, you can check it out here.
#3. Take advantage of data.
One of the biggest advantages all of the advances in construction technology give to business owners is access to actionable data, which can then be used to cut costs where possible. For instance, with ExakTime’s robust reporting feature, you have an instant view on information like overtime, employee time cards, job site stats by employee and much more. This will allow you to make more informed business decisions in terms of which areas you should scale back or double down on in the coming year.
#4. Get a handle on rework.
According to PlanGrid, each and every year, the construction industry hemorrhages approximately $178 billion on patching up errors and completing additional work. If you don’t have your contracts airtight, some of these rework expenses can end up coming out of your own pocket—which can cause a construction business of any size to gradually bleed out profits. To cover your bases, you’ll need to be proactive and have policies for variation claims and change orders ironed out. Upon signing a contract, be sure both parties know exactly what will take place if rework needs to be done. By doing so, you’ll stay compliant and ensure you aren’t left with the bill if things go awry.
#5. Consider integrating modular construction.
Did you know that studies have shown modular construction can cut project times in half—in addition to cutting costs by 20%, according to McKinsey? No matter if you’re an industry giant or an up-and-coming construction business, those increased profits speak for themselves. Modular, or prefabricated, construction is a process where repeatable pieces and structures are built off-site in manufacturing plants before being transported to the job site. This means your crews won’t be required to create and assemble every element of a project on site—saving on business costs from labor to transport and materials waste.
Yet, as of now, modular construction certainly isn’t right for every single business. Due to manufacturing costs, it does require a sizable upfront investment. That being said, if you have the resources to do so, your company’s profits could benefit greatly as a result.